GROUP-29

Shubham Shakar
SM-II GROUP Achin Singh
Sourav Prasad Mallik
Suyash Loiwal
ASSIGNMENT Dishant Parmar
Ratnam Sai Pavan
ADANI ENTERPRISES Ltd
 TABLE OF CONTENT

Chapter-1: Origin & History…………………………………………….………1

Chapter-2: Early Strategy…………………………….……….…………………2

Chapter-3: Scope……………………………….………………………….……...3

3.1 Business Diversification……………………………..……………...….3

3.2 Domestic & Global Diversification………………………..……..…….4

3.3 Merger & Acquisition………………………………..…………………4

3.4 Joint Venture(s)…………………………………………………………5

3.5 Alliance(s)………………………………………………………………5

3.6 Forward & Backward Integration………………………………………6

3.7 Related and Unrelated Diversification………………………………….6

Chapter-4: Drivers of Internationalization………………………………………

Chapter-5: Corporate Challenges in Current Scenario……………………..

Refrences
Chapter-1: Origin and History
Adani Group is an Indian worldwide organization, headquartered in Ahmedabad, Gujarat. It
was established by Gautam Adani in 1988 as a commodity exchanging business, with the
lead organization Adani Enterprises Limited (beforehand Adani Exports Limited). Gautam
Adani is the director. Adani Enterprises Ltd is an India-based organization with essential
interests in energy and logistics segments. The organization's fragments includes exchanging
power port agro real estate and others. They have enhanced interests in power mining oil and
gas investigations flammable gas circulation organizations upheld by port transportation and
exchanging exercises. Their coal mining business includes mining handling obtaining
investigation and advancement of mining resources. Their city gas dispersion business is
embraced through their completely claimed auxiliary Adani Gas Ltd. They work the land
division through their auxiliary Adani Infrastructure and Developers Pvt Ltd. Adani
Enterprises Ltd was joined in the year 1993 with the name Adani Exports Ltd. At first the
organization began as an association firm in 1988 and accomplished business entity status in
the year 1993. On April 1 1993 the organization was agreed the status of Star Trading House
by the Ministry of Commerce Government of India.
In April 1 1994 they were concurred the status of Super Star Trading House by the Ministry
of Commerce Government of India. In September 1994, the organization came out with the
underlying open issue. In the year 1998 the organization turned into the top net unfamiliar
trade (NFE) worker of the nation Jetty at Mundra Port began their activity and the Coal
business of the organization was initiated. In the year 2000 the organization started
exchanging Edible Oil business. The organization got Gold Trophy SRTEPC 1999-00 and
2000-01. The organization granted Five Star Export House status. They effectively
disinvested their stake in Mundra Container Terminal to P and O Ports Singapore.
The organization was granted the most elevated classification 'F' between state permit for
exchanging power by the Central Electricity Regulatory Commission (CERC) in the year
2003. The organization presented new items like Iron Ore Power Trading Maize Sesame
Seeds Sorghum and Barley and so on. During the year 2003-04 the organization sacked
GCCI Export Appreciation Award. In the year 2005 the organization got renowned redesign
of Five Star Export House by virtue of important commitment in nation's general fares.
In the year 2006 Adani Agri fresh started their business. The organization appointed two
skimming crane freight boat. They fired the work on setting up grain storehouses under
Adani Agri Logistics. Likewise, they started the development of 660 MW warm force
venture at Mundra AEL extended wharfs at Mundra Port started. In August 2006, the
organization changed their name from Adani Exports Ltd to Adani Enterprises Ltd the
adjustment in name passes on advancement with a reasonable spotlight on their five SBUs
viz. Force Oil and Gas Real Estate Agro and Metals and Minerals. In July 17 2007 the Base
Depot developed by Adani Agri Logistics was authorized.
The organization went into a drawn-out concurrence with Gujarat Urja Vikas Nigam Ltd to
flexibly 2000 MW of power. In the year 2008 the organization framed a joint endeavor
organization with Chemoil Energy for extension of their bunkering business on dish India
premise. In the year 2009 they got a Letter of Intent (LOI) for the Macchakatta Coal Block
and LOA for Parsa Coal Block. During the year 2009-10 the organization obtained/set up 11
subsidiaries. During the year 2010-11 according to the plan of amalgamation certain
advertiser substances of Mundra Port and Special Economic Zone Ltd (MPSEZ) to be
specific Adani Infrastructure Services Pvt Ltd Advance Tradex Pvt Ltd Adani Tradelinks Pvt
Ltd Pride Trade and Investment Pvt Ltd Mauritius Trident Trade and Investment Pvt Ltd
Mauritius Radiant Trade and Investment Pvt Ltd Mauritius and Ventura Trade and
Investment Pvt Ltd Mauritius was amalgamated with the organization.
Since the plan of Amalgamation became viable MPSEZ turned into an auxiliary of the
organization with 77.49% shareholding by the organization. During the year the organization
set up/obtained forward auxiliaries. Additionally, Adani Virginia Inc stopped as subsidiaries
of the organization. In May 2011, the organization's entirely claimed unit procured Abbot
Point Coal Terminal in Australia's Queensland state for $2 Billion as a major aspect of their
business development abroad. In March 2012, the organization consented to five
arrangements for gracefully of imported coal with NTPC Ltd the force age company. In 2012
Adani Group commissions India's biggest sun-oriented force plant in Gujarat. In 2013 the
organization starts coordinated coal MDO tasks in India with access to coal stores of more
than 3 billion tons. In 2014 the organization and Posco consent to manufacture rail line in
Australia. In 2015 Adani signs MoU with Australia's Woodside Energy for Energy
Cooperation.

Chapter-2: Early strategy

After its inception, the company has focussed on expanding its business in and around
commodity business. The group has leveraged the growth of Indian middle-class segment and
expanded its portfolio which would automatically expand when the middle-class Indian
grows. It was due to increased demand of for goods and services for nation’s infrastructure,
in terms of ports, water and transportation. The entire value chain of the enterprise is aligned
such that there is scope of cross rotation of jobs across difference business units.
The group has in every move aligned itself to supports its vision:
“To be the globally admired leader in an integrated infrastructure business with a deep
commitment to nation building. We shall be known for the scale of our ambition, speed of
execution, quality of operations”
Through its corporate level strategy, the company adds value through the configuration and
organization of its multi-market strategy. The group enjoys the benefits of inter-linkages
between businesses. With increase of port activities, it was facing trouble handling large
volume of import activities at port level. Hence the group took to develop private port
development in Mudra.
Competitive strategy of the group lies in the way its businesses are integrated and yet
independent of each other. This strategy helps company to achieve:
- Cost leadership via integration of the businesses
- Focus via streamlining its vision and mission around infrastructure development
 -

Chapter-3: Scope
3.1 Business Diversification:

Adani
Enterprises

Power and Other

Adani Ports Incubation
Utilities Businesses

Adani Ports and Adani Adani Defence

Adani Realty
Logistics Renewables and Aerospace

Adani
Logistics Airports Adani AgriFresh
Transmissions

Agri Logistics Adani Electricity Adani Solar Adani Wilmar

Industrial Land Adani Power Water Adani Capital

Road, Metro and Adani Housing

Adani Gas
Rail Finance

Data Center

Natural
Resources

Mining Services

Fig-1: Adani Enterprises Overview

Adani Enterprises has a very diverse business. They have also expanded in other lines such
power, mining, realty, edible oil etc. Adani enterprises limited, Adani Ports & SEZ Limited,
Adani power limited, Adani transmission limited, Adani green energy limited, and Adani gas
limited are the listed companies from the Adani group.
Adani Enterprises
Adani started in 1988 with trading commodities and Adani exports was converted to limited
company in 1993. They were exporting lot of items to around 28 countries in the world. The
company was more concentrated on logistics and energy; therefore, it handles the gas
distribution, solar, mining etc. There current incubation portfolio includes mining service,
solar, airport, metro, rail etc.
Adani Ports & SEZ Limited
It is the largest private port in India. The functions include, ports, logistics, Agri logistics,
industrial lands etc. The company had begun its operation in 1998 with launch of Mundra
port.
Adani Power Limited
They are responsible for developing and maintaining the power plants. They have installed 4
power plants in India and these combined have a capacity of 10,440 MW. They also overtook
Tata Power in 2014. The company was established in 1996.
Adani Transmission Limited
Started in 2013, handles various operations related to power transmission. Transmission
capacity stands at 16200 MW.
Adani Green Energy
The company was established on 23 January 2015. They are producing over 2500 MW using
solar and wind energy.
Adani Gas Limited
It started in 2004. It is one of the biggest gas distribution company in India.
3.2 Domestic and Global Diversification
Adani has a good presence in India as well as all over the world.
In 1999, Adani signed a joint venture with Wilmar in Singapore to diversify its business lines
into edible oils. In 2008, the acquired Bunyu Coal Mine in Indonesia. In 2010, they acquired
Carmichael coal mine in Australia. In 2014, Adani also launched a project in Great Barrier
Reef in Australia. Adani has also tapped coal market in various countries like Thailand,
Vietnam, Australia, Sri Lanka, South Africa etc.
3.3 Mergers & Acquisitions:
Adani Enterprises is an umbrella of brands collectively referred as Adani Group which
supports & incubates new businesses until they have a stable cashflow and business plan.
After the business is self-sufficient, it is Demerged and listed as a separate entity. Adani
Power Limited (75%), Adani Ports Special Economic Zone (63.5%), Adani Power Limited
(75%), Adani Green Energy Ltd (75%), Adani Transmission (75%) & Adani Gas Ltd
(37.4%) are the major brands that have been demerged and listed at Indian stock exchanges.
Currently Adani Airports Holdings Ltd, Adani Water Ltd, Adani Road Transport Ltd are still
under this umbrella and are wholly owned by Adani Enterprises Limited.
Adani Green Energy Ltd recently acquired solar assets of Essel Group of 200 MW of solar
operating power assets. It was property of Essel Infra which was sold to Adani Green as a
part of Divestment being done back in 2019 to repay their debt by Essel Group promoters.
These assets have long term power purchase agreements with their respective state and union
bodies which had close to 22 years left on them. It was a brownfield acquisition for Adani
Green a first of its kind for the company acquiring already operational assets. These assets are
present in the states of Uttar Pradesh, Punjab & Karnataka. This move cost the company
more than 1200 Crores which was a strategic acquisition to strengthen their positions in the
afore mentioned states.
3.4 Joint Venture(s):
Adani Wilmar Ltd (AWL) is a joint entity launched back in 1999 between Wilmar
International & Adani Group. Wilmar was and is a leader in Agri business in Asia. Together
Adani Wilmar has become one of the biggest & fastest growing FMCG company. Firm
basically competes in the edible oil space of Indian market & It has one of the biggest
distribution network pan India among all edible oil players. AWL has a diversified portfolio
under brands like “Fortune” which is the leading brand of edible oil in India. It is also moving
on to the personal care segment by launch of “Alife Soap”. AWL has forayed into global
market as well by exporting its products to more than 19 countries which include Australia,
Singapore, New Zealand etc. Brand commands over 30Mn loyal households which is made
evident as its “Fortune” brand was ranked 80th in Top 100 Most Trusted Brands of 2020.
3.5 Alliances:
Adani Enterprises has entered into power distribution business in Mumbai through Adani
Electricity Mumbai ltd (AEML) a fully owned subsidiary of Adani Transmission, in alliance
with MSEB which has distribution network of more than 300sq kms supplying electricity to
nearly 3 million households of financial capital of India.
Adani Defense & Aerospace Ltd is in alliance with Elbit Systems of Israel to manufacture
Aero structure of Hermes 900 an unmanned air vehicle (UAV) which will be long endurance,
medium altitude UAV. This plant will be set up at Hyderabad in Adani Aerospace facility.
It has also confirmed a three-party alliance between Punj Lloyd, Rave Gear (a US Based
Company) & Adani Defence, which will not only design but also manufacture gears of high
precision & transmission systems for rotary platforms. This will draw an initial investment
close to $15 Million which will slowly be increased to $100 Million depending upon the govt
support & order.
Chapter-5: Corporate Challenges in Current Scenario
a. Global Policy Uncertainty
 Policy uncertainty and local regulatory norms have increasingly become volatile and
have impacted the smooth functioning of global markets.
 The economic & financial frictions caused by US-China Trade wars and Brexit has
impacted all the economies, though in different magnitudes.
 The below graph shows that in recent years the uncertainty index is increasing across
the world.
 Increasing uncertainty leads to rise in protectionist governments, hindrance to
globalization, rise in unemployment levels and lower disposable incomes.

Source - https://www.policyuncertainty.com/
b. Changing consumption patterns
 Evolving consumer tastes, new challenges from startup ventures with unique
offerings, changing macro conditions and demographics will pose a challenge to
Adani Group.
 Emergence of online retail players following unorthodox strategies pose a threat to the
sales volume of Adani Group of Companies.
c. Financial Risk Management
  Around the world, companies are combating risks originating from climate changes,
unpredictable demand, trade volatility and credit issues.
 Being a conglomerate with companies in wide range of businesses spanning across
sectors it is important for us to study the different financial risks the group companies
have exposure to.
Adani Group consists of
 Adani Ports
 Adani Power
 Adani Transmission Ltd.
 Adani Green Energy
 Adani Gas Ltd.
Risk Matrix of Adani Group
 Adani Enterprises has exposure to interest rate risk arising from rate changes by
central banks. The company maintains its accounts in rupees and thus is exposed to
exchange rate fluctuations.
 Adani Ports has exposure to foreign exchange risk as part of its revenue is generated
overseas. The recent trade wars and global distrust has led to foreign exchange
volatility. Adani Ports has counterparty credit risk as financial assets consisting of
marketable securities, receivables, advances, and loans expose the Company to credit
risk.
 Adani Power has exposure to interest rate and exchange rate risk, on account of rate
changes by RBI to control inflation. Energy Landscape on whole faces policy
uncertainty. Shifts to renewable sources and push given by GOI through incentives is
disrupting the energy market dynamics.
 Adani Green Energy Ltd. has exposure to exchange rate fluctuations and changes in
interest risk. The energy sector faces policy & regulatory uncertainty. Global shift to
alternative energy is disrupting the energy sector. Need for systematic shift to a low
CO2 emission fuel will take time as countries change their emissions policy. Need for
effectively engage all the stakeholders to create value and for emission reduction.
 Adani Transmission Ltd. has exposure to operational risks such as breakdown of
equipment, ability to obtain right of way, scarcity of skilled manpower, employee
attrition, scarcity of skilled contractors, scarcity of skilled manpower, statutory and
regulatory policy change by government and migration of customers. Regulatory risks
include Business risks, slowdown in the pace of regulatory reforms.
 The Adani Group Companies are operating in capital intensive sectors with high debt
exposure which demands to high ROE by equity holders. The high debt exposure also
leads to credit risk.
d. Maintaining Reputation
 Adani Group is a conglomerate with history of diversifying into various business
sectors like energy, resources, logistics, agribusiness, real estate, financial services,
and defence.
 With such diversified companies, it is important to uphold the Adani Brand and be a
benchmark to the sectors these companies are operating in.